WRAP+® Commercial Crime

Employee dishonesty is costly and pervasive, with small businesses being the most vulnerable to occupational fraud and abuse.  The National Association of Certified Fraud Examiners 2008 Report to the Nation on Occupational Fraud and Abuse reported that the median loss suffered by organizations with fewer than 100 employees was $200,000 and that smaller organizations see an even higher frequency of frauds. 

According to the report, check tampering and fraudulent billing were the most common small business fraud schemes.  Lack of adequate internal controls was most commonly cited as the factor that allowed the fraud to occur and the report confirmed the expectation that smaller businesses generally have fewer or weaker controls in place than their larger counterparts.  Finally, the financial services sector has the highest frequency of fraud and the healthcare sector the third highest frequency.

Crime Coverages

Travelers Wrap+® Fidelity/Crime provides a broad range of coverages for financial losses due to specified perils, including employee theft, on premises and in-transit theft, forgery and alteration and computer theft.   Automatic coverage is provided for employee benefit plans and includes Inflation Guard, a unique feature from Travelers that automatically assures policy period compliance with the limit of fidelity insurance required by ERISA for growing employee benefit plans.  Coverage is provided on a Discovery basis, which provides for uninterrupted coverage back across organizational history, regardless of prior policy structure. 

"Nothing stated herein affects the terms, conditions and coverages of any insurance policy or bond issued by any of the referenced insurers, nor does it imply that coverage does or does not exist for any particular claim or type of claim under any such policy or bond."

Coverage underwritten by Travelers Casualty and Surety Company of America and its property casualty affiliates, Hartford, CT 06183